Concerns raised over potential cuts to homelessness services in Wales

The Welsh Government has been urged to reconsider its proposed funding for preventative homelessness services, amid warnings that planned cuts could reduce critical support for vulnerable households.

Speaking in the Senedd, North Wales MS Mark Isherwood raised concerns about the impact of the Welsh Government’s Draft Budget on the Homelessness Support and Prevention budget line. He highlighted that reduced funding could affect advice and support services provided by Shelter Cymru, which has a strong track record in preventing homelessness.

“In 88 per cent of their cases, Shelter Cymru manage to prevent homelessness, and, in 59 per cent, to keep individuals and families in their original home,” Mr Isherwood said. “However, they’re concerned by the detail of the Homelessness Support and Prevention budget line in the Welsh Government Draft Budget.”

Mr Isherwood noted that Shelter Cymru’s work is largely funded by the Homelessness Prevention Grant, part of the same budget line as the Housing Support Grant (HSG). He warned that non-HSG grants are set to face real-terms cuts, which could lead to reduced advice capacity for 360 households.

“A cash-flat grant would mean reduced support for homelessness prevention for two consecutive years, which, combined with the cost of meeting the National Insurance rise, would require an overall cost-saving equivalent to two full-time advisers,” he said.

The Welsh Government has previously pledged to end homelessness, but Mr Isherwood questioned the consistency of this commitment. “How do you respond to Shelter Cymru’s call for the Welsh Government to increase all grants within the Homelessness Support and Prevention budget line?” he asked.

In response, the Cabinet Secretary for Housing stated: “I do understand the complexity of the budget, but very much we’re doing what we can, putting prevention first here and supporting preventative services.”

Speaking after the session, Mr Isherwood reiterated his concerns, calling the services “critical” and warning that any reduction in funding would have significant consequences. “The Welsh Government would be both duplicitous and foolish if it did not safeguard them,” he said.

Shelter Cymru has expressed fears that the proposed funding levels will hinder their ability to deliver essential services. Their prevention work has proven to be effective in supporting individuals and families to stay in their homes, reducing the strain on emergency housing services.